1.

A second-hand farm tractor worth R60 000 has a limited useful life of 5 years
and depreciates at 20% p.a. on a reducing-balance basis. Determine the value
of the tractor at the end of each year over the 5 year period.

2. A school buys a minibus for R950 000, which depreciates at 13,5% per annum.
Determine the value of the minibus after 3 years if the depreciation is
calculated

1. on a straight-line basis.

2. on a reducing-balance basis

3. Which is the better option?

3. Farmer Jack bought a tractor and it has depreciated by 20% p.a. on a

reducing-balance basis. If the current value of the tractor is R52 429, calculate
how much Farmer Jack paid for his tractor if he bought it 7 years ago.

4. A 20kg watermelon consists of 98% water. If it is left outside in the sun it

loses 3% of its water each day. How much does it weigh after a month of 31
days?

5. Cristina bought a fridge at the beginning of 2 009 for R8 999 and sold it at the
end of 2 011 for R4 500. At what rate did the value of her fridge depreciate
assuming a reducing-balance method? Give your answer correct to two
decimal places.